Crypto is digital currency that is built on a decentralized network. Crypto is cool to consider as an investment. Be it short term or long term. Meanwhile, we know if something can either be sweet or bitter. In the case of crypto, it is both.
Before I go into the shortcomings, I will have to talk about the advantages of crypto. Having been investing in crypto for the past few years, I would say these few highlights are what one gets to see when diving into crypto. They include:
Having said it is a decentralized network, another thing is that transactions are traced and done publicly. There is no word for privacy which makes it transparent.
Crypto is a well secured system. It is very difficult to hear that the system has been hacked; rather , fraudsters only target individuals who click on unverified links. Clicking on the link gives these fraudsters access to hijack the account this making the right owner in loss.
The transaction feel is low making it user-friendly and affordable for members.
Lastly, it is a platform for all. As it is not limited, anyone with a smartphone, data connection can transact no matter the location.
Going over to the disadvantages, crypto has disadvantages which make most people fearful of investing their funds. The following are the few reasons why crypto investment is seen to be risky. They include:
Crypto doesn't have any fixed price, meaning the value can change rapidly and unpredictably. It is very very volatile and its next move is unpredictable.
Not being controlled by any authority like the traditional financial institutions this giving rooms for fraudulent activities by users and hackers.
There are different terms used in crypto. These terminologies and the interface can be a difficult thing for a beginner to understand.
Crypto is a high risk, high reward investment. It is always advisable to invest what one can afford to lose because of the market volatility.